Question 1 The following exchange rates are simultaneously quoted in New York and Frankfurt 1.4355 $/ (New York) 0.6825 /$ (Frankfurt) (a) Is there any arbitrage opportunity with these quotations? (b) How would you take advantage of any arbitrage situation? (c) What is your profit? Question 2 The Canadian dollar is currently traded at 1.4076 C$/$ while the Euro is traded at 0.6925/$: (a) Determine the C$/ rate consistent with these direct quotations (b) Suppose the C$/ cross rate in the market was at 1.3525 C$/. Is there any arbitrage opportunity? (c) How would you take advantage of any arbitrage situation? (d) What is your profit